The New York Stock Exchange has warned the oil company Cobalt International Energy that the company’s share price is no longer in compliance with the NYSE listing standards.
Cobalt’s 30-day average closing share price as of November 13, 2017 was $0.95, in violation of the listing standard which requires the trailing 30-day average closing share price to remain at or above $1.00.
Cobalt now has six months to try and lift its share price to $1.00 or above, to regain compliance.
Within this cure period, Houston-based Cobalt must have a closing share price of $1.00 or higher on the last trading day of a given month or at the end of the cure period. In addition, Cobalt’s coinciding trailing 30-day average closing share price must also be $1.00 or higher.
Cobalt on Thursday said it had notified the NYSE of its intention to regain compliance within the six-month cure period.
During the cure period, Cobalt’s stock will continue to be listed on the NYSE, subject to its ability to remain in compliance with other continued listing standards.
“The notice received from the NYSE does not affect the ongoing business of Cobalt, nor does it trigger any violations, including any event of default, of its secured or unsecured debt obligations,” Cobalt, an independent exploration and production company active in the deepwater U.S. Gulf of Mexico and offshore West Africa, said.
Market cap warning
As previously reported, Cobalt in October received continued listing standard notice from the NYSE on October 10, 2017, over its not big enough market capitalization.
Namely, the NYSE notified Cobalt that its average market capitalization at the time was below $50 million and its stockholders’ equity was less than $50 million, which are NYSE minimum requirements.
In order to comply with procedures, Cobalt in October said it would notify the NYSE of its intent to submit a business plan to the stock exchange within 45 days from its receipt of the notice to cure this deficiency and return to compliance with NYSE continued listing requirements.